thyssenkrupp Interim report 1st quarter 2019/2020€¦ · Automotive Global sales and production of cars and light trucks in 2019 down significantly from a year earlier, driven in

Interim report 1st quarter 2019 / 2020

October 1, 2019 – December 31, 2019

thyssenkrupp AG

thyssenkrupp interim report 1st quarter 2019 / 2020

thyssenkrupp in figures

2


Group1)

1st quarterended

Dec. 31, 2018

1st quarter ended

Dec. 31, 2019 Change in %

Order intake million € 10,111 9,660 (450) (4)

Net sales million € 9,736 9,674 (63) (1)

EBIT2) million € 181 (115) (297) --

EBIT margin % 1.9 (1.2) (3.1) --

Adjusted EBIT2) million € 217 50 (167) (77)

Adjusted EBIT margin % 2.2 0.5 (1.7) (77)

Income/(loss) before tax million € 99 (206) (305) --

Net income/(loss) or earnings after tax million € 68 (364) (432) --

attributable to thyssenkrupp AG's shareholders million € 60 (372) (432) --

Earnings per share (EPS) € 0.10 (0.60) (0.69) --

Operating cash flows million € (2,245) (2,144) 101 4

Cash flow for investments million € (257) (327) (70) (27)

Cash flow from divestments million € 25 18 (8) (30)

Free cash flow3) million € (2,477) (2,453) 24 1

Free cash flow before M & A3) million € (2,477) (2,476) 1 0

Net financial debt (Dec. 31) million € 4,684 7,138 2,454 52

Total equity (Dec. 31) million € 3,274 1,934 (1,340) (41)

Gearing (Dec. 31) % 143.1 369.1 226.1 158

Employees (Dec. 31) 161,496 161,538 42 0

1) See preliminary remarks. 2) See reconciliation in segment reporting (Note 08). 3) See reconciliation in the analysis of the statement of cash flows.



3

Order intake million €

Net sales million €

EBIT1) million €

Adjusted EBIT1) million € Employees

1st quarterended

Dec. 31, 2018

1st quarter ended

Dec. 31, 2019

1st quarterended

Dec. 31, 2018

1st quarter ended

Dec. 31, 2019

1st quarterended

Dec. 31, 2018

1st quarter ended

Dec. 31, 2019

1st quarterended

Dec. 31, 2018

1st quarter ended

Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2019

Automotive Technology2) 1,283 1,353 1,231 1,367 9 (78) 13 21 24,712 25,891

Industrial Components2) 643 558 573 544 42 43 43 44 14,493 13,528

Elevator Technology 2,143 2,232 1,923 2,045 199 207 204 228 53,285 52,838

Plant Technology2) 668 568 615 755 (37) (19) (30) (18) 11,113 11,300

Marine Systems 107 103 298 381 0 0 0 0 5,868 6,104

Materials Services 3,370 3,078 3,388 3,046 22 11 22 11 20,378 20,238

Steel Europe 2,341 2,115 2,131 1,851 34 (166) 38 (164) 27,613 28,093

Corporate Headquarters2) 0 1 0 1 (74) (103) (63) (66) 1,187 1,041

Reconciliation2) (443) (348) (424) (316) (12) (10) (11) (6) 2,847 2,505

Group2) 10,111 9,660 9,736 9,674 181 (115) 217 50 161,496 161,538

1) See reconciliation in segment reporting (Note 08). 2) See preliminary remarks.

THYSSENKRUPP STOCK / ADR MASTER DATA AND KEY FIGURES

ISIN Number of shares (total) shares 622,531,741

Shares (Frankfurt, Düsseldorf stock exchanges) DE 000 750 0001 Closing price end December 2019 € 12.04

ADRs (over-the-counter trading) US88629Q2075 Stock exchange value end December 2019 million € 7,495

Symbols

Shares TKA

ADRs TKAMY


Contents

Contents

Our fiscal year begins on October 1 and ends on

September 30 of the following year.

02 thyssenkrupp in figures

05 Interim management report

05 Preliminary remarks

05 Report on the economic position

05 Summary

07 Macro and sector environment

10 Group and business area review

15 Results of operations and financial

position

19 Compliance

20 Forecast, opportunity and risk report

20 2019 / 2020 forecast

23 Opportunities and risks

24 Condensed interim financial

statements

25 Consolidated statement of financial

position

27 Consolidated statement of income

28 Consolidated statement of

comprehensive income

29 Consolidated statement of changes in

equity

31 Consolidated statement of cash flows

33 Selected notes to the consolidated

financial statements

48 Review report

49 Additional information

49 Contact and 2020 / 2021 financial

calendar


Interim management report | Report on the economic position

5

Preliminary remarks On June 13, 2019 the European Commission formally prohibited the planned steel joint venture

with Tata Steel Europe. The planned transaction encompassed the Steel Europe business area,

thyssenkrupp MillServices & Systems GmbH from the Materials Services business area, and

individual companies belonging to Corporate. As a result of the prohibition, these businesses no

longer meet the criteria for presentation as a discontinued operation under IFRS 5. Starting with the

interim report for the 3rd quarter 2018 / 2019 the discontinued operations were therefore

reclassified as continuing operations for the full 2018 / 2019 fiscal year. In accordance with

IFRS 5 the presentation in the consolidated statements of income and cash flows therefore had to

be adjusted accordingly. The adjustments also include the retrospective recognition of amortization

and depreciation not charged due to classification as a discontinued operation, amounting to

€115 million in the 1st quarter 2018 / 2019 (before taxes).

In connection with the strategic realignment “newtk”, Components Technology has been focused

on the automotive business since October 1, 2019 and renamed Automotive Technology. A new

addition to the business area is System Engineering, which develops among other things

production lines for the auto industry and was part of Industrial Solutions up to September 30,

2019. The Bearings and Forged Technologies businesses have been removed from Components

Technology. The two units now report under the name Industrial Components. Industrial Solutions

has been renamed Plant Technology and comprises our chemical plant, cement plant and mining

equipment businesses. The administrative units of Corporate and the regions are presented as

Corporate Headquarters. In addition the Service Units and Special Units have been combined with

consolidation items and are presented separately in the new reporting line “Reconciliation”.

Presentation and disclosure of the prior period have been adjusted in line with the aforementioned

changes.

Report on the economic position

Summary

As expected, the positive earnings performance of the capital goods businesses overall

was unable to offset the cyclical decline at the materials businesses ■ Order intake lower, materials businesses significantly weaker; capital goods businesses at prior-

year level ■ Sales stable: strong capital goods businesses offset weak materials businesses

– Automotive Technology with significant growth, in particular in steering systems

– Industrial Components down year-on-year: growth in particular in wind energy unable to offset

cyclical decline mainly in truck components and construction machinery undercarriages

– Elevator Technology with positive performance in particular in the Americas and Asia-Pacific in

new installations and service

Interim management report



6

– Plant Technology significantly higher year-on-year mainly due to ramp up of sales under major

chemical plant orders from the prior year

– Marine Systems with significant improvement as a result of high sales under a frigate contract

(North Africa)

– Materials Services down year-on-year due to lower prices and volumes

– Steel Europe down from prior year due to lower prices and volumes ■ Adjusted EBIT as expected significantly lower year-on-year: positive overall performance of

capital goods businesses unable to offset significant cyclical decline in materials businesses

– Automotive Technology: higher earnings contributions mainly from dampers and camshafts

more than offset losses at Springs & Stabilizers and System Engineering

– Industrial Components: higher earnings contributions from bearings for wind energy more

than offset cyclically lower volumes in the forging business (components for trucks and

construction machinery)

– Elevator Technology with continuing positive earnings and margin trend (0.5 percentage

points above prior year)

– Plant Technology negative but with improvement, among other things through slight

operating recovery in chemical and cement plant engineering and proceeds from sale of a

building

– Marine Systems stable despite continuing low margins in project billings

– Materials Services as expected down from prior year with pressure on margins due to

declining prices and volumes

– Steel Europe significantly lower year-on-year and negative due to continuing price/cost

pressure and lower shipments, mainly to the automotive industry

– Corporate Headquarters with continuing reduction of administrative costs but lower one-time

effects ■ Net income significantly lower year-on-year and negative mainly due to operating performance ■ Free cash flow before M&A as expected significantly negative at prior-year level: operating

improvements outweighed by payment of fine in cartel case in the amount of recognized

provision of €370 million; seasonally high net working capital at materials businesses ■ Full-year forecast unchanged; as before, limited visibility and reduced planning reliability –

particularly for our more cyclical businesses with materials and car and truck components;

impact of spread of coronavirus must be monitored (see forecast report) ■ “newtk” update:

– Portfolio: preparations for Elevator transaction proceeding, carve-out complete, decision on

transaction expected end of February; disposal process/assessment of alliances for Plant

Technology under way, dispatch of information materials to potential interested parties in

preparation

– Performance: Steel Strategy 20 / 30 presented in December, further details to be announced

after decision on Elevator transaction and after conclusion of negotiations with codetermination

representatives in connection with further detailing of “newtk”; restructuring and personnel

reductions: Automotive Technology and Plant Technology with elimination of business area

level; implementation of new organizational structure as milestone in the streamlining of

Corporate Headquarters completed at the turn of the year



7

Macro and sector environment

Moderate global economic growth at prior-year level expected in 2020 ■ Global economic growth expectations for 2020 revised downward again slightly compared with

start of fiscal year ■ Industrialized countries: initially continuing economic slowdown with weaker investment; reduced

impetus from consumer spending; continuing supportive monetary policy; leading indicators

point to economic stabilization at low level in the further course of the year ■ Emerging economies: economic momentum to pick up slightly in 2020, supported by monetary

easing; additional impetus from fiscal policy in some countries; but political and economic

uncertainties remain ■ Risks and uncertainties: further escalation of trade conflicts, geopolitical flashpoints (particularly

in Middle East, USA-Iran), negotiations in the transitional phase between EU and UK on possible

free trade agreement, severe and sustained weakening of growth in China; indebtedness

problems particularly in some countries of Europe, and volatile material and commodity prices;

risks through outbreak and further spread of coronavirus and associated temporary plant

closures, in particular in China

GROSS DOMESTIC PRODUCT

Real change compared to previous year in % 20191) 20202)

Euro zone 1.2 1.0

Germany 0.6 0.8

Russia 1.2 2.0

Rest of Central/Eastern Europe 3.6 2.8

USA 2.3 1.8

Brazil 1.1 2.0

Japan 1.2 0.8

China 6.2 5.8

India 5.1 5.5

Middle East & Africa 1.2 2.0

World 2.9 2.9

1) Party estimates 2) Forecast Sources: IHS Markit, IMF, consensus forecasts, misc. banks and research institutes, own estimates

Automotive ■ Global sales and production of cars and light trucks in 2019 down significantly from a year earlier,

driven in part by continuing weak sales in China and collapse of Indian car market; markets

expected to remain weak in 2020 ■ Subdued outlook for 2020 largely reflects weak performance of world’s largest market, China ■ Europe: sales in 2019 stable year-on-year; slight decline expected in 2020, partly due to

uncertainty about future trading conditions with UK (Brexit) and USA ■ NAFTA: sales and production down in 2019 from a high market level; sales to decline in 2020



8

■ China: car sales and production in decline since 2nd half of 2018, slight recovery in 4th quarter

2019 from weak prior-year level; forecasts for 2020 highly uncertain, Chinese manufacturers’

association (CAAM) currently expecting car sales to remain weak ■ Trucks above 6 t: 2019 weaker in China and collapse in India, other markets stable with growth in

some areas. NAFTA in particular with another strong year for Class 8 trucks; overall market to

shrink in 2020 due to further declines in China and Europe and cyclical drop in sales of Class

8 trucks in NAFTA

Machinery ■ Germany: negative growth forecast for 2020 confirmed; weak global economy, trade restrictions

and geopolitical dislocations holding back investment ■ USA: production output expected to decrease in 2020; negative impact from trade restrictions

and cyclical downturn in global machinery sector ■ China: slower growth in 2020 due to falling demand for capital goods and trade restrictions; but

fiscal policy supportive

Construction ■ Germany: growth to slow slightly in 2020; continuing support from solid income growth,

favorable financing conditions and demand for new housing ■ USA: output growth higher in 2020 – housing construction momentum stronger due to rise in

number of building permits and housing starts ■ China and India: growth in China in 2020 slower than prior year due to economic slowdown and

tighter lending – continuing urbanization trend supporting housing construction investment;

growth higher in India



9

1) Partly estimates 2) Forecast 3) Passenger cars and light commercial vehicles up to 6t (completely built up vehicles only; without so-called CKD units) Sources: IHS Markit, Oxford Economics, national associations, own estimates

Steel ■ Global demand for finished steel in 2019 slightly higher year-on-year, mainly due to China,

probable 3 % decline in EU stronger than expected; prospects for 2020 remain subdued with

continuing high political and economic uncertainties and risks ■ EU carbon flat steel market weaker in 2019 mainly due to weak automotive market, with imports

noticeably too high; spot market prices reached their lowest point in the reporting quarter,

cautious signs of a recovery due to restocking ■ Market environment remains extremely challenging, also structurally – continuing global

overcapacities, ongoing risks from trade imbalances and highly volatile raw material prices

IMPORTANT SALES MARKETS

20191) 20202)

Vehicle production, million cars and light trucks3)

World 86.1 85.7

Western Europe (incl. Germany) 13.3 13.1

Germany 4.8 4.8

USA 10.6 11.0

Mexico 3.8 3.8

Japan 9.2 9.1

China 24.3 24.1

India 4.1 3.9

Brazil 2.7 2.8

Machinery production, real, in % versus prior year

Germany (2.4) (2.0)

USA (0.8) (1.5)

Japan (4.8) 1.0

China 4.8 4.5

Construction output, real, in % versus prior year

Germany 2.7 1.5

USA 0.5 2.2

China 5.2 4.0

India 5.7 8.2



10

Group and business area review

As expected positive earnings performance of capital goods businesses overall unable to

offset cyclical decline in materials businesses

ORDER INTAKE

million € 1st quarter ended

Dec. 31, 20181st quarter ended


Change on a comparable basis1)

in %

Automotive Technology2) 1,283 1,353 5 4

Industrial Components2) 643 558 (13) (14)

Elevator Technology 2,143 2,232 4 3

Plant Technology2) 668 568 (15) (16)

Marine Systems 107 103 (3) (4)

Materials Services 3,370 3,078 (9) (9)

Steel Europe 2,341 2,115 (10) (10)

Corporate Headquarters2) 0 1 ++ ++

Reconciliation2) (443) (348) — —

Group2) 10,111 9,660 (4) (5)

1) Excluding material currency and portfolio effects 2) See preliminary remarks.

Order intake of capital goods businesses overall level with prior year in 1st quarter:

Automotive Technology ■ Significant year-on-year increase due to start of production at new plants and projects, in

particular for steering systems but also for damper systems and camshaft modules; by contrast

System Engineering weaker; difficult overall market environment in the automotive sector,

dominated by continuing weak sales on world’s biggest market, China

Industrial Components ■ Lower than prior year mainly due to cyclical downturn in forging business ■ Bearings: overall good order situation in particular for wind energy in China, slight decline in

construction machinery components and project business ■ Cars/trucks: strong cyclical downturn in market for Class 8 trucks – in particular in the USA,

general weakening of European market, fall in demand in China ■ Undercarriages for construction machinery: global cyclical fall in demand, partly offset by

widening of product range and development of new markets/business fields

Elevator Technology ■ Year-on-year increase to new record high. Positive performance in Americas in new installations

and modernization business in particular in the USA ■ Orders in hand (excluding service) at €5.7 billion also a new record high



11

Plant Technology ■ Significantly down from prior year, mainly reflecting major mining order in prior year ■ Chemical plants: stable demand in particular for electrolysis plants and equipment, among

others in Europe and Asia; order for energy-saving chlorine production plant in Spain ■ Cement: overall positive development; medium-size order for cement plant in the USA; smaller

orders for components and services ■ Mining: lower year-on-year, reflecting major order in prior year; smaller orders among others for

stockyard technology in Russia and gravel plant in Germany

Marine Systems ■ At prior-year level; orders in marine electronics for German customer and subcontracts for a

customer from North Africa

Order intake of the materials businesses significantly down from prior year:

■ Materials Services significantly lower year-on-year due to substantial fall in volumes and

renewed decrease in prices ■ Steel Europe significantly lower due to decreased prices; higher order volumes (2.7 million t;

+16 %) – recovery in orders from industrial customers (excl. Automotive), steel service centers

and distribution customers mainly due to restocking

NET SALES




Change on a comparable basis1)

in %

Automotive Technology2) 1,231 1,367 11 10

Industrial Components2) 573 544 (5) (6)

Elevator Technology 1,923 2,045 6 5

Plant Technology2) 615 755 23 22

Marine Systems 298 381 28 28

Materials Services 3,388 3,046 (10) (11)

Steel Europe 2,131 1,851 (13) (13)

Corporate Headquarters2) 0 1 ++ ++

Reconciliation2) (424) (316) — —

Group2) 9,736 9,674 (1) (1)

1) Excluding material currency and portfolio effects 2) See preliminary remarks.

Sales of the capital goods businesses overall significantly higher:

■ Automotive Technology with significant increase, sales in line with order intake; positive

exchange rate effects especially from USD ■ Industrial Components: increase in particular in wind energy unable to offset cyclical decrease

mainly in truck components and construction machinery undercarriages ■ Elevator Technology: significant year-on-year improvement; positive performance in particular in

Americas and Asia-Pacific in new installations and service; new installations business in Asia-



12

Pacific profited from infrastructure projects, in particular in China, and overall clear growth in

number of units sold; also significant increase in service sales in China ■ Plant Technology significantly higher year-on-year: mainly due to ramp-up in sales revenue from

major chemical plant orders in prior year ■ Marine Systems significantly higher year-on-year as a result of high sales revenue from frigate

order (North Africa); submarine, marine electronics, maintenance and service areas stable

Sales of the materials businesses down sharply year-on-year:

Materials Services ■ Overall materials sales revenues and volumes lower year-on-year (2.3 million t shipments; prior

year: 2.4 million t), reflecting demand trend and also absence of internal direct-to-customer

business (partially transferred to Steel Europe) ■ Declining volumes in warehousing and distribution and auto-related service centers; demand on

European markets weak, in America too demand in 1st quarter lower year-on-year ■ Despite growth in volumes, sales in direct-to-customer business down due to price decreases for

all materials (particularly minerals) ■ Further decline in prices in virtually all product segments, particularly stainless steel; slight price

recovery for finished steel at end of 1st quarter ■ At AST, slight drop in sales with sharp decline in volumes

Steel Europe ■ Volume- and price-related decrease: clear reductions in shipments (2.2 million t; prior year

2.4 million t) affecting practically all end customer groups, but increased volumes with our

distributor customers due to need for restocking ■ Price level clearly lower year-on-year partly on account of less favorable product mix with

temporarily higher spot market share

ADJUSTED EBIT




Automotive Technology1) 13 21 66

Industrial Components1) 43 44 3

Elevator Technology 204 228 12

Plant Technology1) (30) (18) 41

Marine Systems 0 0 0

Materials Services 22 11 (52)

Steel Europe 38 (164) --

Corporate Headquarters1) (63) (66) (5)

Reconciliation1) (11) (6) —

Group1) 217 50 (77)

1) See preliminary remarks.



13

Adjusted EBIT of the capital goods businesses overall significantly higher year-on-year:

Automotive Technology ■ Clearly higher year-on-year as a result of increased earnings contributions mainly from dampers

and camshafts; continuing negative contribution from Springs & Stabilizers and negative

contribution from System Engineering ■ Earnings supported by one-time effect of remeasurement of pension plans ■ Measures initiated to increase profitability: elimination of business area level, creation of lean

office structure, as well as capacity adjustments and cost measures at System Engineering

Industrial Components ■ Slightly higher year-on-year, mainly due to higher earnings contribution from bearings for wind

turbines ■ Bearings: clearly higher year-on-year due to volume and structural factors ■ Forgings: significantly lower year-on-year mainly due to lower sales, tariff disputes between USA

and China negatively impacting demand in China; supported by early introduction of systematic

cost-reduction measures

Elevator Technology ■ Strong year-on-year increase with positive developments in all regions, supported by sales

growth and positive effects from global performance programs ■ Margin 0.5 percentage points up from prior year at 11.1 %

Plant Technology ■ Negative but better than in prior year, among other things due to slight recovery in chemical and

cement plant engineering as well as proceeds from sale of a building ■ Transformation program underway; among other things structural adjustments, reduction of

administrative, selling, material and product costs, and improved project execution

Marine Systems ■ At prior-year level, continuing low margins on projects billed

Adjusted EBIT of the materials businesses down significantly year-on-year in a weak market environment:

Materials Services ■ Margin pressure from declining prices in both service units, partly offset by positive effects from

derivatives ■ AST also lower year-on-year mainly due to price trend in stainless steel caused by continuing

import pressure – as a result of largely ineffective EU safeguard measures

Steel Europe ■ Earnings significantly negative and lower year-on-year; difficult market environment with

negative volume and price effects and higher raw material costs, particularly iron ore; also

impacted by costs of low capacity utilization and increased personnel costs

Corporate Headquarters ■ Slightly lower year-on-year mainly reflecting lower one-time effects ■ Continuing implementation of measures to reduce administrative costs



14

Reconciliation shows improvement from higher sales and lower costs for maintenance measures.

Earnings impacted by special items

SPECIAL ITEMS



Dec. 31, 2019 Change




Plant Technology1) 7 2 (6)


Materials Services 1 0 0

Steel Europe 4 1 (3)

Corporate Headquarters1) 12 38 26

Reconciliation1) 2 4 2

Group1) 36 166 129


■ Main special items in the reporting period:

– Automotive Technology: restructuring expenses mainly in connection with capacity

adjustments and personnel reduction at System Engineering and job cuts at business area

level

– Industrial Components: in forgings business mainly restructurings at the plants in Brazil, Italy

and India initiated in prior year

– Elevator Technology: mainly costs in connection with restructurings in business units Europe /

Africa and Americas and preparation of carve-out; partly offset by partial reversal of a

provision for a legal case

– Corporate Headquarters: provisions for restructurings at thyssenkrupp AG; project expenses in

connection with the planned Elevator transaction



15

Results of operations and financial position

Analysis of the statement of income

Income from operations ■ Slight fall in net sales coupled with disproportionate increase in cost of sales mainly due to

higher personnel expenses in connection with restructuring measures; noticeable decrease in

gross profit margin to 12.7 % (prior year: 15.1 %) ■ Rise in general and administrative costs mainly as a result of increased personnel expenses, also

in connection with restructuring measures ■ Decrease in other income mainly due to lower insurance recoveries ■ Reduction in other expenses particularly owing to declining losses from the hedging of

operational exchange rate risks

Financial income/expense and income tax ■ Overall deterioration reflecting above all increased interest expense for financial debt ■ Increase in tax expense due to higher deferred tax expenses from temporary differences in

Germany, higher tax income abroad, and one-time expenses in connection with creating the

Elevator transaction structure

Earnings per share ■ Net income clearly down by €432 million to net loss of €364 million ■ Earnings per share accordingly down by €0.69 to loss of €0.60

Analysis of the statement of cash flows

Operating cash flows ■ Clearly negative operating cash flows slightly improved particularly as a result of net decrease in

funds tied up in operating assets and liabilities

Cash flows from investing activities ■ Capital spending higher year-on-year; capital spending higher in materials and capital goods

businesses



16


Automotive Technology ■ Focus on expansion of capacities for cylinder head modules in Hungary and adjustable

camshafts in China

Industrial Components ■ Growth capex to increase production capacity above all in wind energy, primarily at European

and Asian production sites ■ Continued investment in fully automated forging press for truck front axles at the Homburg site in

Germany progressing very well and on schedule

Elevator Technology ■ Regular maintenance capex chiefly in connection with construction of new headquarters to

concentrate administration and research activities in Atlanta/USA

Plant Technology ■ Continuing investment in expansion of technology portfolio to safeguard market position and also

in infrastructure measures

Marine Systems ■ Further implementation of modernization of Kiel shipyard

Materials Services ■ Construction of a new, state-of-the-art logistics center for Region North by thyssenkrupp Schulte

in Rotenburg (Wümme); soil investigations are complete and foundation stone laying took place

on February 4, 2020

Steel Europe ■ Foundation stone laying for new hot-dip coating line (FBA 10) took place at the Dortmund site

on October 31, 2019, construction of steelwork began in November 2019, commissioning

scheduled for June 2021

Corporate Headquarters ■ Capital expenditures for IT licenses

INVESTMENTS







Plant Technology1) 8 8 0


Materials Services 18 23 27

Steel Europe 94 121 29

Corporate Headquarters1) 0 0 0

Reconciliation1) (6) 2 ++

Group1) 257 327 27



17

Cash flows from financing activities ■ Clearly lower cash flows from financing activities primarily due to year-on-year decrease in

proceeds from borrowings

Free cash flow and net financial debt

RECONCILIATION TO FREE CASH FLOW BEFORE M & A



Dec. 31, 2019 Change

Operating cash flows (consolidated statement of cash flows) (2,245) (2,144) 101

Cash flow from investing activities (consolidated statement of cash flows) (231) (309) (78)

Free cash flow (FCF)1) (2,477) (2,453) 24

–/+ Cash inflow/cash outflow resulting from material M & A transactions 0 12 12

Adjustment due to IFRS 16 0 (35) (35)

Free cash flow before M & A (FCF before M & A)1) (2,477) (2,476) 1


■ As expected FCF before M & A significantly negative at prior-year level: operating improvements

outweighed by impact of fine in cartel case in amount of recognized provision of €370 million;

seasonally high net working capital at materials businesses ■ Net financial debt up to €7.1 billion at December 31, 2019, mainly reflecting significantly

negative FCF before M & A as well as adoption of IFRS 16 (Leases) ■ Ratio of net financial debt to equity (gearing) at 369.1 % higher than at September 30, 2019

(166.8 %); €1.0 billion increase in net financial debt from adoption of IFRS 16 (Leases) at

October 1, 2019 has no effect on gearing limit at closing date (September 30) specified in

thyssenkrupp AG’s current agreements with banks, because for this purpose net financial debt is

adjusted for IFRS 16 effects ■ Available liquidity of €5.1 billion (€2.1 billion cash and cash equivalents and €3.0 billion undrawn

committed credit lines) ■ Existing commercial paper program with a maximum emission volume of €3.0 billion was drawn in

the amount of €1.0 billion at December 31, 2019

Rating

RATING

Long-term rating Short-term rating Outlook

Standard & Poor’s BB- B developing

Moody’s Ba3 not Prime negative

Fitch BB+ B watch negative

■ With the publication of the results for fiscal year 2018 / 2019 and announcement of the forecast

for fiscal year 2019 / 2020, the rating agency Moody’s changed its Ba3 rating outlook from

“review for downgrade” to “negative”.



18

Analysis of the statement of financial position

Non-current assets ■ Decrease in intangible assets particularly as a result of exchange rate effects ■ Strong increase in property, plant and equipment primarily resulting from initial adoption of

IFRS 16 ■ Reduction in deferred tax assets due to utilization through profit or loss and in connection with

interest rate changes for pension obligations

Current assets ■ Increase in inventories mainly in the materials businesses ■ Decrease in trade accounts receivable above all in the materials and industrial components

businesses ■ Increase in contract assets chiefly in connection with the execution of construction contracts ■ Reduction in other financial assets primarily due to derivatives accounting ■ Increase in other non-financial assets mainly due to higher advances to suppliers ■ Sharp overall decrease in cash and cash equivalents mainly due to negative free cash flow in the

reporting period together with cash inflows from proceeds from borrowings

Total equity ■ Decrease compared with September 30, 2019 mainly due to net loss in the reporting period and

losses from currency translation recognized in other comprehensive income, partly offset by

gains on remeasurement of pensions and similar obligations recognized in other comprehensive

income

Non-current liabilities ■ Decrease in accrued pension and similar obligations mainly due to gains from remeasurement in

the reporting period, primarily as a result of higher pension interest rates ■ Net increase in financial debt mainly due to initial adoption of IFRS 16 and at the same time

reclassification of a bond due in November 2020 to current financial debt

Current liabilities ■ Reduction in provisions for current employee benefits mainly due to utilization ■ Decrease in other provisions mainly due to use of the provision in connection with the heavy

plate cartel case against thyssenkrupp Steel Europe AG which ended in December 2019 ■ Higher financial debt in particular from the aforementioned reclassification of a bond from non-

current financial debt, liabilities to financial institutions, and utilization of the commercial paper

program ■ Sharp decline in trade accounts payable, especially in the materials and automotive businesses ■ Increase in contract liabilities mainly due to an overall increase in advance payments in

connection with construction contracts


Interim management report | Compliance

19

Compliance

■ Organizational merger of compliance and legal departments effective January 1, 2020 ■ Strong values remain: reliability, honesty, credibility and integrity ■ Values anchored in the Group Mission Statement, Code of Conduct and Compliance Commitment ■ Heavy Plate investigations: thyssenkrupp Steel Europe AG has settled the proceedings by mutual

agreement with the Federal Cartel Office; payment of the €370 million fine in December 2019

covered through use of the provision ■ More information on compliance at thyssenkrupp in the 2018 / 2019 Annual Report and on the

website www.thyssenkrupp.com


Interim management report | Forecast, opportunity and risk report

20

Forecast, opportunity and risk report

2019 / 2020 forecast unchanged

In fiscal 2019 / 2020 we intend to intensify our restructuring and improvement measures in our

businesses and at Corporate, which will also be reflected in our financial performance indicators.

Sales and earnings in large parts of our materials and components businesses may be subject to

short-term fluctuations, driven in part by raw material prices. For these businesses in particular,

the economic conditions are currently very uncertain. Against this background reliable sales and

earnings forecasts for a full fiscal year are only possible to a limited extent.

The uncertainties surrounding the economic conditions arise among other things from:

■ the future economic policy of the USA, above all a further escalation of the existing trade

conflicts with corresponding protectionist countermeasures by China and the EU that may

appreciably impact global economic growth ■ the slowing growth of the Chinese economy as a key factor for global growth and as an important

sales market ■ the outcome of the Brexit negotiations on economic growth in Europe, on exports and on future

investment – above all in the UK itself but also in the other countries of Europe ■ the high overall indebtedness in some EU states which could cause significant uncertainty on the

financial markets. This could limit the willingness of banks to lend to businesses and private

households with negative consequences for investment activity and consumer spending ■ the continuing structural overcapacities in the steel industry, the corresponding competitive and

import pressure on the European market and increasing dislocations in international steel trade

flows, among other things as a result of the US tariffs on steel imports – also impacting the price

situation on the spot market ■ the volatility and level of raw material prices as an important cost factor in our materials

businesses and as a key factor for our plant engineering customers in the award of major

projects ■ the structural transformation in the auto industry (changing mobility patterns, different

powertrain technologies, digitization) which could be slower than expected if there is a sharper

global downturn ■ Risks from the outbreak and further spread of the coronavirus and associated temporary plant

closures particularly in China as well as possible slowdown in economic growth



21

For key assumptions and expected economic conditions see forecast section and “Macro and

sector environment” in the report on the economic position in the 2018 / 2019 Annual Report and

this interim management report.

2019 / 2020 expectations: cautious outlook overall for the fiscal year marked by limited

visibility and increased restructuring

Against the background of the economic and geopolitical uncertainties described above, the limited

visibility and reduced planning reliability this creates particularly for our more cyclical businesses

with materials and car and truck components, the overall outlook for the fiscal year is cautious.

In connection with the implementation of “newtk” we will continue and intensify measures to

develop and restructure our businesses. The level of restructuring expense in individual fiscal years

will depend in part on the speed achievable in the restructuring of the businesses and the group.

The following forecast is based on the assumption that Elevator Technology is a fully consolidated

company.

Due to the reorganization of business units, the prior-year figures for Automotive Technology,

Industrial Components, Plant Technology and Corporate have been calculated on a simplified basis,

i.e. without reconsolidation.

■ Sales of the Group – subject to the factors described above – growth in the low single-digit

percentage range (prior year: €42.0 billion); we see growth opportunities in parts of our capital

goods businesses ■ Adjusted EBIT of the Group – subject to the factors described above – level with the prior year

(prior year: €802 million), overall progress in the capital goods businesses and generally weaker

earnings in the materials businesses ■ Automotive Technology with recovery in adjusted EBIT to a positive level (prior year: pro forma

€(22) million) based on an increase in sales in the mid-single-digit percentage range (prior year:

pro forma €5.4 billion) and a return to a positive margin (prior year: pro forma (0.4)%); reflecting

in particular the further ramp-up of new plants and projects for steering systems and camshaft

modules, supported by efficiency and restructuring programs; continued negative earnings

contribution of Springs and Stabilizers; System Engineering aiming for an improvement but

earnings remaining negative ■ Industrial Components with a moderate decline in sales and earnings (prior year, pro forma sales:

€2.5 billion, adjusted EBIT: €230 million), increased sales of bearings and continuous cost and

efficiency measures unable to fully offset the cyclical downturn in crankshafts (particularly truck)

and construction machinery components mainly in Europe and North America ■ Elevator Technology with a currency-adjusted sales increase in the low to mid-single-digit

percentage range (prior year: €8.0 billion); including the additional costs of €20 – 30 million

expected to be incurred for the carve-out of Elevator Technology; adjusted EBIT margin between

11.0 – 12.0 %, on a comparable basis corresponding to higher or at least stable adjusted EBIT

margin (prior year: 11.4 %; taking into account these expected additional costs 11.1 %) –

supported by restructuring and efficiency measures



22

■ Plant Technology depending on order intake with significant sales growth (prior year: pro forma

€2.9 billion); adjusted EBIT clearly improved but still negative, supported by cost measures also

in the administrative area, improvements in project execution, and growth in high-margin service

business (prior year: pro forma €(145) million) ■ Marine Systems with stable sales; slightly positive adjusted EBIT (prior year: €1 million) due to

cost measures, improvements in project execution, and higher earnings contributions from new

projects ■ Materials Services with currently limited visibility and ongoing measures to secure earnings,

largely stable adjusted EBIT (prior year: €107 million) ■ Steel Europe with currently limited visibility and despite ongoing measures to secure earnings,

negative adjusted EBIT (prior year: €31 million), with earnings impacted by the continuing

negative contribution of Heavy Plate ■ Corporate Headquarters, comprising the administrative units of Corporate and the regions,

costs/adjusted EBIT roughly level with the prior year (prior year: pro forma €(252) million)

As part of the implementation of Performance First under “newtk”, intensification of our

restructuring efforts, with costs (special items) expected in a mid-3-digit million € amount.

As a result and with the absence of positive effects from the prior year, significantly higher net loss

for the year (prior year: net loss €260 million).

Capital spending expected to be up from the prior year, among other things due to the adoption of

IFRS 16 (prior year: €1,443 million).

Free cash flow before M & A lower than prior year (prior year: €(1,140) million) as a result of

operational improvements, depending on cash inflows from order intake and payment profiles for

projects at Plant Technology and Marine Systems, significantly higher expenses for restructuring in

the mid-3-digit million € range, and the payment of the fine in the cartel proceedings at Heavy

Plate in the amount of the provisions recognized.

Net financial debt to increase sharply year-on-year mainly as a result of the cash flow situation and

the adoption of IFRS 16 (prior year: €3,703 million); this does not include any proceeds from the

Elevator Technology transaction.

tkVA of the Group expected to be lower year-on-year (prior year: €(1,068) million) due to the effects

described above.

We will take into account the development of our key performance indicators – also keeping in mind

economic justifiability – in preparing our dividend proposal to the Annual General Meeting.



23

Opportunities and risks

Opportunities ■ Strategic and operational opportunities described in 2018 / 2019 Annual Report continue to apply ■ Opportunities from the resolved strategic realignment of the Group ■ Engineering and materials expertise and “thyssenkrupp“ brand: market opportunities with

tailored technological and competitive solutions ■ With advancing digitization, global thyssenkrupp research and development network offers

opportunities for integrating currently separate value chains

Risks ■ No risks threatening ability to continue as going concern; detailed information on risks described

in 2018 / 2019 Annual Report continues to apply ■ Economic risks: Further escalation of trade conflicts, geopolitical flashpoints (particularly in

Middle East), course of negotiations in the transition phase between EU and UK on a possible

free trade agreement, distinct and lasting slowdown of growth in China, problems of

indebtedness in particular in some European countries, volatile material and commodity prices,

further slowing of automotive market ■ Temporary efficiency losses in production as a result of restructurings in connection with

implementation of our strategic realignment ■ Risks of cost and schedule overruns in the execution of major projects ■ Risks from attacks on IT infrastructure; countermeasure: further expansion of information

security management and security technologies ■ Risks from the outbreak and further spread of the coronavirus and associated temporary plant

closures particularly in China


Condensed interim financial statements

Condensed interim financial statements

25 Consolidated statement of financial position

27 Consolidated statement of income

28 Consolidated statement of comprehensive income

29 Consolidated statement of changes in equity

31 Consolidated statement of cash flows

33 Selected notes

48 Review report


Condensed interim financial statements | thyssenkrupp AG – Consolidated statement of financial position

25

thyssenkrupp AG – Consolidated statement of financial position

ASSETS

million € Note Sept. 30, 2019 Dec. 31, 2019

Intangible assets 5,029 4,979

Property, plant and equipment (inclusive of investment property) 8,144 9,091

Investments accounted for using the equity method 128 131

Other financial assets 39 40

Other non-financial assets 240 288

Deferred tax assets 1,733 1,578

Total non-current assets 15,313 16,107

Inventories 7,781 8,324

Trade accounts receivable 5,488 5,161

Contract assets 1,443 1,702

Other financial assets 808 621

Other non-financial assets 1,642 1,710

Current income tax assets 293 329

Cash and cash equivalents 3,706 2,079

Total current assets 21,162 19,927

Total assets 36,475 36,034

See accompanying notes to consolidated financial statements.


Condensed interim financial statements | thyssenkrupp AG – Consolidated statement of financial position

26

EQUITY AND LIABILITIES

million € Note Sept. 30, 2019 Dec. 31, 2019

Capital stock 1,594 1,594

Additional paid-in capital 6,664 6,664

Retained earnings (6,859) (7,043)

Cumulative other comprehensive income 352 256

Equity attributable to thyssenkrupp AG’s stockholders 1,751 1,471

Non-controlling interest 469 462

Total equity 2,220 1,934

Accrued pension and similar obligations 03 8,947 8,600

Provisions for other employee benefits 307 301

Other provisions 554 549

Deferred tax liabilities 48 32

Financial debt 05 6,529 6,661

Other financial liabilities 136 97

Other non-financial liabilities 6 6

Total non-current liabilities 16,527 16,245

Provisions for current employee benefits 357 219

Other provisions 04 1,726 1,440

Current income tax liabilities 260 299

Financial debt 05 886 2,564

Trade accounts payable 6,355 4,913

Other financial liabilities 1,209 1,240

Contract liabilities 4,561 4,855

Other non-financial liabilities 2,373 2,326

Total current liabilities 17,728 17,855

Total liabilities 34,255 34,100

Total equity and liabilities 36,475 36,034

See accompanying notes to consolidated financial statements.


Condensed interim financial statements | thyssenkrupp AG – Consolidated statement of income

27

thyssenkrupp AG – Consolidated statement of income

million €, earnings per share in € Note

1st quarterended

Dec. 31, 20181)

1st quarterended

Dec. 31, 2019

Sales 08, 09 9,736 9,674

Cost of sales (8,269) (8,442)

Gross margin 1,468 1,232

Research and development cost (82) (78)

Selling expenses (680) (686)

General and administrative expenses (573) (651)

Other income 88 76

Other expenses (47) (19)

Other gains/(losses), net 6 10

Income/(loss) from operations 179 (117)

Income from companies accounted for using the equity method 4 5

Finance income 196 206

Finance expense (279) (299)

Financial income/(expense), net (79) (89)

Income/(loss) before tax 99 (206)

Income tax (expense)/income (31) (158)

Net income/(loss) 68 (364)

Thereof:

thyssenkrupp AG’s shareholders 60 (372)



Basic and diluted earnings per share based on 10

Net income/(loss) (attributable to thyssenkrupp AG's shareholders) 0.10 (0.60)

See accompanying notes to consolidated financial statements. 1) Figures have been adjusted (cf. Note 02).


Condensed interim financial statements | thyssenkrupp AG – Consolidated statement of comprehensive income

28

thyssenkrupp AG – Consolidated statement of comprehensive income

million €

1st quarter ended

Dec. 31, 20181)

1st quarterended

Dec. 31, 2019


Items of other comprehensive income that will not be reclassified to profit or loss in future periods:

Other comprehensive income from remeasurements of pensions and similar obligations

Change in unrealized gains/(losses), net (81) 251

Tax effect 13 (67)

Other comprehensive income from remeasurements of pensions and similar obligations, net (68) 184

Share of unrealized gains/(losses) of investments accounted for using the equity-method 0 0

Subtotals of items of other comprehensive income that will not be reclassified to profit or loss in future periods (68) 184

Items of other comprehensive income that could be reclassified to profit or loss in future periods:

Foreign currency translation adjustment

Change in unrealized gains/(losses), net 62 (89)

Net realized (gains)/losses 1 0

Net unrealized (gains)/losses 63 (89)

Unrealized gains/(losses) from fair value measurement of debt instruments

Change in unrealized gains/(losses), net 1 0


Tax effect 0 0

Net unrealized (gains)/losses 1 0

Unrealized gains/(losses) from impairment of financial instruments

Change in unrealized gains/(losses), net (1) 0

Net realized (gains)/losses (2) 0

Tax effect 1 0

Net unrealized (gains)/losses (3) 0

Unrealized gains/(losses) on cash flow hedges

Change in unrealized gains/(losses), net 7 (16)


Tax effect (4) 7

Net unrealized (gains)/losses 9 (9)

Share of unrealized gains/(losses) of investments accounted for using the equity-method 1 (1)

Subtotals of items of other comprehensive income that could be reclassified to profit or loss in future periods 71 (99)

Other comprehensive income 3 85

Total comprehensive income 71 (279)

Thereof:

thyssenkrupp AG’s shareholders 49 (283)




Condensed interim financial statements | thyssenkrupp AG – Consolidated statement of changes in equity

29

thyssenkrupp AG – Consolidated statement of changes in equity

Equity attributable to thyssenkrupp AG’s stockholders

million €, (except number of shares)

Number of sharesoutstanding Capital stock

Additional paid-in capital Retained earnings

Balance as of Sept. 30, 20181) 622,531,741 1,594 6,664 (5,606)

Adjustment due to the adoption of IFRS 9 (43)

Balance as of Oct. 1, 2018 622,531,741 1,594 6,664 (5,649)

Net income/(loss)1) 60

Other comprehensive income (68)

Total comprehensive income1) (8)

Profit attributable to non-controlling interest

Balance as of Dec. 31, 20181) 622,531,741 1,594 6,664 (5,658)

Balance as of Sept. 30, 2019 622,531,741 1,594 6,664 (6,859)

Adjustment due to the adoption of IFRS 16 (1)

Balance as of Oct. 1, 2019 622,531,741 1,594 6,664 (6,860)

Net income/(loss) (372)

Other comprehensive income 184

Total comprehensive income (188)

Profit attributable to non-controlling interest

Other changes 5

Balance as of Dec. 31, 2019 622,531,741 1,594 6,664 (7,043)



Condensed interim financial statements | thyssenkrupp AG – Consolidated statement of changes in equity

30

Equity attributable to thyssenkrupp AG’s stockholders

Cumulative other comprehensive income

Cash flow hedges

Foreign currencytranslation

adjustment

Fair value measurement of

debt instruments

Impairment of financial

instrumentsDesignated risk

component Hedging costs

Share of investments accounted for using

the equity method TotalNon-controlling

interest Total equity

(34) 8 — 69 — 40 2,734 468 3,203

53 9 (5) 5

(34) 8 53 69 0 40 2,744 463 3,208

60 8 68

51 1 (3) 7 0 1 (11) 13 3

51 1 (3) 7 0 1 49 21 71

0 (4) (4)

17 8 50 76 0 41 2,793 481 3,274

187 7 46 68 (1) 43 1,751 469 2,220

(1) 0 (1)

187 7 46 68 (1) 43 1,750 469 2,219

(372) 8 (364)

(85) 0 0 (9) (1) 0 89 (3) 85

(85) 0 0 (9) (1) 0 (284) 5 (279)

0 (12) (12)

5 0 5

102 7 46 59 (1) 43 1,471 462 1,934


Condensed interim financial statements | thyssenkrupp AG – Consolidated statement of cash flows

31

thyssenkrupp AG – Consolidated statement of cash flows

million €

1st quarterended

Dec. 31, 20181)

1st quarterended

Dec. 31, 2019


Adjustments to reconcile net income/(loss) to operating cash flows:

Deferred income taxes, net (17) 73

Depreciation, amortization and impairment of non-current assets 283 353

Income/(loss) from companies accounted for using the equity method, net of dividends received (4) (5)

(Gain)/loss on disposal of non-current assets (7) (9)

Changes in assets and liabilities, net of effects of acquisitions and divestitures and other non-cash changes

– Inventories (719) (576)

– Trade accounts receivable (11) 280

– Contract assets (142) (269)

– Accrued pension and similar obligations (24) (81)

– Other provisions (186) (419)

– Trade accounts payable (1,398) (1,417)

– Contract liabilities 266 329

– Other assets/liabilities not related to investing or financing activities (355) (38)

Operating cash flows (2,245) (2,144)

Purchase of investments accounted for using the equity method and non-current financial assets (1) 0

Expenditures for acquisitions of consolidated companies net of cash acquired 0 (1)

Capital expenditures for property, plant and equipment (inclusive of advance payments) and investment property (224) (305)

Capital expenditures for intangible assets (inclusive of advance payments) (32) (21)

Proceeds from disposals of investments accounted for using the equity method and non-current financial assets 0 0

Proceeds from disposals of property, plant and equipment and investment property 20 18

Proceeds from disposals of intangible assets 5 0

Cash flows from investing activities (231) (309)

Proceeds from liabilities to financial institutions 1,138 1,051

Repayments of liabilities to financial institutions (104) (518)

Lease liabilities 0 (51)

Proceeds from/(repayments on) loan notes and other loans 588 266

(Increase)/decrease in current securities 0 (1)

Profit attributable to non-controlling interest (4) (12)

Other financing activities 132 106

Cash flows from financing activities 1,750 840

Net increase/(decrease) in cash and cash equivalents (726) (1,613)

Effect of exchange rate changes on cash and cash equivalents 17 (13)

Cash and cash equivalents at beginning of year 3,006 3,706

Cash and cash equivalents at end of year 2,297 2,079


Condensed interim financial statements | thyssenkrupp AG – Consolidated statement of cash flows

32

million €

1st quarterended

Dec. 31, 20181)

1st quarterended

Dec. 31, 2019

Additional information regarding cash flows from interest, dividends and income taxes which are included in operating cash flows:

Interest received 6 6

Interest paid (62) (31)

Dividends received 0 0

Income taxes paid (97) (86)



Condensed interim financial statements | thyssenkrupp AG – Selected notes

33

thyssenkrupp AG – Selected notes

Corporate information

thyssenkrupp Aktiengesellschaft (“thyssenkrupp AG” or “Company”) is a publicly traded corporation domiciled in Duisburg and Essen

in Germany. The condensed interim consolidated financial statements of thyssenkrupp AG and its subsidiaries, collectively the

“Group”, for the period from October 1, 2019 to December 31, 2019, were reviewed and authorized for issue in accordance with a

resolution of the Executive Board on February 10, 2020.

Basis of presentation

The accompanying Group’s condensed interim consolidated financial statements have been prepared pursuant to section 115 of the

German Securities Trading Act (WpHG) and in conformity with IAS 34 “Interim financial reporting”. They are in line with the

International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board

(IASB) for interim financial information effective within the European Union. Accordingly, these financial statements do not include all

of the information and footnotes required by IFRS for complete financial statements for year-end reporting purposes.

The accounting principles and practices as applied in the condensed interim consolidated financial statements as of

December 31, 2019 correspond to those pertaining to the most recent annual consolidated financial statements with the exception of

the recently adopted accounting standards. A detailed description of the accounting policies is published in the notes to the

consolidated financial statements of our annual report 2018 / 2019.

01 Recently adopted accounting standards In fiscal year 2019 / 2020, thyssenkrupp adopted the following standard, interpretations and amendments to existing standards that,

with the exception of IFRS 16, do not have a material impact on the Group’s consolidated financial statements:

In January 2016, the IASB published the new accounting standard IFRS 16 Leases. The new standard replaces the previous

classification of leases into operating and finance leases as a lessee and introduces a uniform accounting model for the lessee. Under

the previous standard (IAS 17), lease obligations for operating leases were only to be disclosed in the notes. In accordance with

IFRS 16, the rights and obligations resulting from leases must be recognized as a right-of-use of the leased asset and a

corresponding lease liability in the lessee’s statement of financial position.

This resulted in the following recognition and measurement principles:

A contract constitutes a lease if the contract conveys the lessee

– the right to control the use of an identified asset (the leased asset)

– for a specific period

– in exchange for a consideration.



34

Since October 1, 2019, the group as a lessee recognizes in general for all leases within the statement of financial position an asset

for the right of use of the leased assets and a liability for the lease payment commitments at present value. These are primarily

rentals of property and buildings, technical equipment and machinery, other plants and operating and office equipment. The right of

use assets reported under property, plant and equipment are recognized at cost less accumulated depreciation and impairment

losses. Payments for non-lease components are not included in the determination of the lease liability. The lease liabilities reported

under financial liabilities reflect the present value of the outstanding lease payments at the time the asset is made available for use.

Lease payments are discounted at the interest rate implicit in the lease if it can be readily determined. Otherwise, they are discounted

at the lessee’s incremental borrowing rate. The derivation of the interest rate is based on the assumption that an adequate amount of

funds will be raised over an adequate period of time in the amount of an asset comparable to the right of use asset, taking into

account the economic environment and comparable collateral.

The lease liabilities include the following lease payments:

– Fixed payments, less lease incentives to be paid by the lessor;

– variable lease payments that are based on an index or an interest rate;

– expected amounts to be payable by the lessee under residual value guarantees;

– the exercise price of a purchase option, if the exercise is reasonably certain and

– payment of penalties for the termination of the lease, if the lease term reflects the lessee exercising an option to terminate the

lease .

Right-of-use assets are measured at cost, which are comprised as follows:

– Lease liability;

– lease payments made at or before the commencement date less any lease incentives received;

– initial direct costs, and

– dismantling obligations.

Subsequent measurement is performed at amortized cost. Right-of-use assets are depreciated on a straight-line basis over the lease

term, unless the useful life of the underlying asset is shorter. If the lease agreement contains reasonably certain purchase options,

the right of use is depreciated over the economic life of the underlying asset.

In subsequent measurement, the lease liability is compounded, and the corresponding interest expense is recognized in the financial

result. The lease payments made reduce the carrying amount of the lease liability.

In accordance with the recognition exemptions, low-value leases of and short-term leases (less than twelve months) are recognized in

the statement of income. thyssenkrupp has identified certain asset classes (e.g. PCs, telephones, printers, copiers) which regularly

contain leased assets of low value. Outside these asset classes, only leased assets with a value of up to €5,000 are classified as low-

value leased assets. Furthermore, the new regulations are not applied to leases of intangible assets. For contracts comprising a non-

lease component as well as a lease component, each lease component must be accounted for separately from non-lease component

as a lease. The lessee must allocate the contractually agreed-upon payment to the separate lease components based on the relative

standalone selling price of the lease component and the aggregated standalone selling price of the non-lease components. In

addition, intercompany leases will continue to be presented in the segment report according to IFRS 8 as operating leases in

accordance with IAS 17.



35

The term of the lease is determined based on the non-cancellable lease term. Especially real estate leases contain extension and

termination options. Such contractual conditions offer the greatest possible operational flexibility to the Group. In determining the

lease term, all facts and circumstances are considered that provide an economic incentive to exercise renewal options or not to

exercise termination options. Lease term modifications from the exercise or non-exercise of such options are only considered in the

lease term if they are reasonably certain and are based on an event that is within the control of the lessee.

As a lessor in an operating lease, the group recognizes the leased asset as an asset at amortized cost under property, plant and

equipment. The lease payments received during the period are recognized as lease income under sales and are amortized on a

straight-line basis over the term of the lease.

As a lessor in a finance lease, the group recognizes a receivable in the statement of financial position at the amount equal to the

present value of the discounted net investment in the lease adjusted for the unguaranteed residual value.

thyssenkrupp applies IFRS 16 for the first time for fiscal year 2019 / 2020 beginning on October 1, 2019. Use is made of the

exemption option to apply IFRS 16 to all agreements that were previously identified as leases by applying IAS 17 and IFRIC 4.

The Group has applied the modified retrospective approach in accordance with IFRS 16.C5(b). In accordance with this approach the

comparative prior-year figures do not have to be adjusted and the first-time adoption effects are recognized in retained earnings of

thyssenkrupp as of October 1, 2019.

The Group recognized new assets and liabilities for its operating leases at the date of transition to IFRS 16. When applying the

modified retrospective method, right of use assets were recognized at the initial recognition date at the carrying amounts of the lease

liabilities adjusted for deferred lease payments. The lease liabilities were recognized at the present value of the lease payments

outstanding at the date of first-time application, discounted at the lessee’s incremental borrowing rate at the date of first-time

application. thyssenkrupp made use of exemption options in the transition to IFRS 16 and treated leases with a remaining term of up

to twelve months as short-term leases, left initial direct costs unaffected in the initial measurement of the right-of-use asset, and took

current knowledge into account in determining the lease terms for agreements with extension and/or termination options. No

impairment test in accordance with IAS 36 was carried out at the time of initial application. Instead, leases entered into immediately

prior to October 1, 2019, were assessed in accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” to

determine whether they were onerous.

The effects on the Group’s previous finance leases were insignificant.

As of October 1, 2019, additional right-of-use assets in the amount of €1.0 billion and additional lease liabilities in the amount of

€1.0 billion were recognized as part of the transition to IFRS 16.



36

Based on the operating lease commitments as of September 30, 2019, the reconciliation to the carrying amounts of the opening

balance of the lease liabilities as of October 1, 2019 is as follows:

RECONCILIATION – IFRS 16

million €

Operating lease commitments as of Sept. 30, 2019 1,326

Minimum lease payments (gross) finance lease as of Sept. 30, 2019 50

Practical expedient for short-term leases (21)

Practical expedient for low-value leases (10)

IAS 17 commitments not to be considered according to IFRS 16 (102)

Others 13

Gross lease liability as of Oct. 1, 2019 1,256

Interest charges (200)

Lease liabilities as of Oct. 1, 2019 1,056

Finance lease liabilities as of Sept. 30, 2019 (37)

Additional lease liability due to initial application of IFRS 16 as of Oct. 1, 2019 1,019

Based on the operating lease commitments, payments for short-term leases in the amount of €21 million, payments for leases of

low-value assets in the amount of €10 million, and payment obligations in accordance with IAS 17 for leases already signed as of

September 30, 2019 in which the commencement of the underlying assets will take place at a later date in the amount of

€102 million, were deducted.

The lease liabilities were discounted as of October 1, 2019 using the lessee’s incremental borrowing rate. The weighted average

interest rate was 3.5%.

The statement of financial position as of December 31, 2019 and the statement of income for the 1st quarter ended December 31,

2019 were as follows:

LEASES IN THE STATEMENT OF FINANCIAL POSITION

Assets € million Dec. 31, 2019

Total non-current assets

Right-of-use assets – land 145

Right-of-use assets – buildings 683

Right-of-use assets – technical machinery and equipment 32

Right-of-use assets – other equipment, factory and office equipment 159

Right-of-use assets – investment property 1

Total 1,020

Equity and liabilities € million Dec. 31, 2019

Total non-current liabilities

Lease liabilities 909

Total current liabilities

Lease liabilities 121

Total 1,030



37

The effects of the first-time adoption of the new standards were recognized directly in equity at the date of transition but were not

material for thyssenkrupp. This also applies to the effects in regard to deferred tax assets and deferred tax liabilities.

Furthermore in fiscal year 2019 / 2020, thyssenkrupp adopted the following standards, interpretations and amendments to already

existing standards that do not have a material impact on the Group’s consolidated financial statements:

■ IFRIC 23: “Uncertainty over Income Tax Treatments“, issued in June 2017 ■ Amendments to IFRS 9: “Financial Instruments“, issued in October 2017 ■ Amendments to IAS 28: “Investments in Associates and Joint Ventures“, issued in October 2017 ■ Annual-Improvements to IFRSs 2015–2017 Cycle, issued in December 2017 ■ Amendments to IAS 19: “Plan Amendment, Curtailment or Settlement“, issued in February 2018

02 Reclassification of discontinued operations in the 3rd quarter ended June 30, 2019 On June 13, 2019 the European Commission formally prohibited the planned steel joint venture with Tata Steel Europe. The planned

transaction, encompassing the Steel Europe business area, thyssenkrupp MillServices & Systems GmbH from the Materials Services

business area, and individual companies which in 2017 / 2018 belonged to Corporate, therefore no longer met the criteria for

presentation as a discontinued operation in accordance with IFRS 5 and had to be reclassified accordingly for the total fiscal year

2018 / 2019 beginning with the interim financial statements of the 3rd quarter ended June 30, 2019. Under IFRS 5, the reporting had

to be adjusted in such a way that in the statement of income and in the statement of cash flows the discontinued steel operations

were no longer reported separately. An element of the required adjustments were also the retrospective recognition of amortization

and depreciation not charged due to classification as a discontinued operation, amounting to €115 million in the 1st quarter ended

December 31, 2018 (before tax).

LEASES IN THE STATEMENT OF INCOME


Dec. 31, 2019

Other sales

Income from operating lease 1

Lease expense

Expense from short-term leases 12

Expense from leases for low-value assets 1

Expense from variable payments 1

Depreciation and amortization expense

Depreciation of right-of-use assets 52

Financial income/(expense), net

Interest expense from lease liabilities 7



38

03 Accrued pension and similar obligations Based on updated interest rates and fair value of plan assets, an updated valuation of accrued pension obligations was performed as

of December 31, 2019.

ACCRUED PENSION AND SIMILAR OBLIGATIONS

million € Sept. 30, 2019 Dec. 31, 2019

Accrued pension obligations 8,688 8,341

Partial retirement 209 202

Other accrued pension-related obligations 50 57

Total 8,947 8,600

The Group applied the following weighted average assumptions to determine pension obligations:

WEIGHTED AVERAGE ASSUMPTIONS

Sept. 30, 2019 Dec. 31, 2019

in % Germany Outside Germany Total Germany Outside Germany Total

Discount rate for accrued pension obligations 0.70 1.42 0.88 0.90 1.58 1.07

04 Other provisions The restructuring provisions included in other provisions increased by €82 million to €282 million compared with September 30, 2019.

The additions in the amount of €128 million mainly relate to Automotive Technology, Elevator Technology and Corporate

Headquarters.

As of September 30, 2019 other provisions included the provision recognized in connection with the investigations by the Federal

Cartel Office into thyssenkrupp Steel Europe AG in the heavy plate case. Following receipt of the fine notice in the amount of €370

million in December 2019, the provision was utilized in full in the 1st quarter ended December 31, 2019 through payment of the fine.

The proceedings with the Federal Cartel Office authorities have thus been terminated by mutual agreement.

In connection with the elevator cartel, potentially injured parties have asserted claims for damages against thyssenkrupp AG and

companies of the thyssenkrupp Group in and out of court. Since September 30, 2019 further claims have been quantified. A majority

of the proceedings have now been dealt with through settlement, withdrawal or dismissal of the claims. Legal cases are still pending

in Austria, Belgium and the Netherlands. They are at different stages of proceedings. thyssenkrupp has recognized provisions for the

portion of the pending claims which thyssenkrupp believes will probably result in cash outflows.

05 Financial debt The existing commercial paper program with a maximum emission volume of €3.0 billion was drawn in the amount of €1.0 billion as

of December 31, 2019.



39

06 Contingencies and commitments

Contingencies

thyssenkrupp AG as well as, in individual cases, its subsidiaries have issued or have had guarantees in favour of business partners or

lenders. The following table shows obligations under guarantees where the principal debtor is not a consolidated Group company:

CONTINGENCIES

Maximum potential amount of future

payments as of Provision as of

million € Dec. 31, 2019 Dec. 31, 2019

Advance payment bonds 20 1

Performance bonds 1 0

Other guarantees 5 0

Total 26 1

The basis for possible payments under the guarantees is always the non-performance of the principal debtor under a contractual

agreement, e.g. late delivery, delivery of non-conforming goods under a contract or non-performance with respect to the warranted

quality.

All guarantees are issued by or issued by instruction of thyssenkrupp AG or subsidiaries upon request of the principal debtor

obligated by the underlying contractual relationship and are subject to recourse provisions in case of default. If such a principal debtor

is a company owned fully or partially by a foreign third party, the third party is generally requested to provide additional collateral in a

corresponding amount.

Commitments and other contingencies

Due to the high volatility of iron ore prices, in the Steel Europe business area the existing long-term iron ore and iron ore pellets

supply contracts are measured for the entire contract period at the iron ore prices applying as of the respective balance sheet date.

Compared with September 30, 2019, purchasing commitments decreased by approx. €0.45 billion to €0.9 billion.

There have been no material changes to the other commitments and contingencies since the end of fiscal year 2018 / 2019.

07 Financial instruments The carrying amounts of trade accounts receivable, other current financial assets as well as cash and cash equivalents equal their fair

values. The fair value of loans equals the present value of expected cash flows which are discounted on the basis of interest rates

prevailing on the interim balance sheet date.

Equity and debt instruments are in general measured at fair value, which is based to the extent available on market prices as of the

interim balance sheet date or internal valuation models.

The fair value of foreign currency forward transactions is determined on the basis of the middle spot exchange rate applicable as of

the interim balance sheet date, and taking account of forward premiums or discounts arising for the respective remaining contract

term compared to the contracted forward exchange rate. Common methods for calculating option prices are used for foreign currency

options. The fair value of an option is influenced not only by the remaining term of an option, but also by other factors, such as

current amount and volatility of the underlying exchange or base rate.



40

Interest rate swaps and cross currency swaps are measured at fair value by discounting expected cash flows on the basis of market

interest rates applicable for the remaining contract term. In the case of cross currency swaps, the exchange rates for each foreign

currency, in which cash flows occur, are also included.

The fair value of commodity futures is based on published price quotations. It is measured as of the interim balance sheet date, both

internally and by external financial partners.

The carrying amounts of trade accounts payable and other current liabilities equal their fair values. The fair value of fixed rate

liabilities equals the present value of expected cash flows. Discounting is based on interest rates applicable as of the balance sheet

date. The carrying amounts of floating rate liabilities equal their fair values.

Financial liabilities measured at amortized cost with a carrying amount of €14,351 million as of Dec. 31, 2019 (Sept. 30, 2019:

€14,876 million) have a fair value of €14,484 million (Sept. 30, 2019: €14,995 million) that was determined based on fair value

measurement attributable to level 2.

Financial assets and liabilities measured at fair value could be categorized in the following three level fair value hierarchy:

FAIR VALUE HIERARCHY AS OF SEPT. 30, 2019

million € Sept. 30, 2019 Level 1 Level 2 Level 3

Financial assets at fair value

Fair value recognized in profit or loss

Derivatives not qualifying for hedge accounting 126 0 126 0

Derivatives qualifying for hedge accounting 7 0 7 0

Equity instruments 13 9 4 0

Fair value recognized in equity


Debt instruments 20 17 3 0


Total 1,472 26 259 1,187

Financial liabilities at fair value






Total 202 0 202 0



41

FAIR VALUE HIERARCHY AS OF DEC. 31, 2019

million € Dec. 31, 2019 Level 1 Level 2 Level 3

Financial assets at fair value




Equity instruments 13 8 5 0



Debt instruments 20 17 3 0


Total 1,146 25 119 1,002

Financial liabilities at fair value






Total 136 0 136 0

The fair value hierarchy reflects the significance of the inputs used to determine fair values. Financial instruments with fair value

measurement based on quoted prices in active markets are disclosed in level 1. In level 2 determination of fair values is based on

observable inputs, e.g. foreign exchange rates. level 3 comprises financial instruments for which the fair value measurement is based

on unobservable inputs. For the trade accounts receivable classified as level 3, the fair value equals the carrying amount less

impairment losses recognized in comprehensive income.

08 Segment reporting In connection with the strategic realignment “newtk”, the following changes have been made to the organizational and reporting

structure since October 1, 2019:

The former business area Components Technology has been focused on the automotive business since October 1, 2019 and

renamed Automotive Technology. A new addition to the business area is System Engineering, which develops among other things

production lines for the auto industry and was part of Industrial Solutions up to September 30, 2019. The Bearings and Forged

Technologies businesses have been removed from Components Technology. The two units now report under the name Industrial

Components. Industrial Solutions has been renamed Plant Technology and comprises our chemical plant, cement plant and mining

equipment businesses. The administrative units of Corporate and the regions are presented as Corporate Headquarters. In addition

the Service Units and Special Units have been combined with consolidation items and are presented separately in the new reporting

line “Reconciliation”.

The prior-period figures are adjusted accordingly.



42

Segment information for the 1st quarter ended December 31, 2018 and 2019, respectively is as follows:

SEGMENT INFORMATION 1 )

million € Automotive Technology

Industrial Components

Elevator Technology

Plant Technology

Marine Systems

Materials Services

Steel Europe

Corporate Headquarters Reconciliation Group

1st quarter ended Dec. 31, 2018

Net sales 1,233 569 1,923 612 298 3,318 1,778 0 5 9,736

Internal sales within the Group (1) 4 0 3 0 70 353 1 (429) 0

Total sales 1,231 573 1,923 615 298 3,388 2,131 0 (424) 9,736

EBIT 9 42 199 (37) 0 22 34 (74) (12) 181

Adjusted EBIT 13 43 204 (30) 0 22 38 (63) (11) 217


Net sales 1,364 540 2,044 749 382 2,961 1,628 0 6 9,674

Internal sales within the Group 3 4 1 6 (1) 85 222 1 (323) 0

Total sales 1,367 544 2,045 755 381 3,046 1,851 1 (316) 9,674

EBIT (78) 43 207 (19) 0 11 (166) (103) (10) (115)

Adjusted EBIT 21 44 228 (18) 0 11 (164) (66) (6) 50

1) Figures of 2018/2019 have been adjusted.

Compared with September 30, 2019, average capital employed increased by €472 million to €1,764 million at Elevator Technology,

by €(58) million to €(210) million at Plant Technology and by €268 million to €1,196 million at Marine Systems as of December 31,

2019.



43

The column „Reconciliation“ breaks down as following:

BREAKDOWN RECONCILIATION 1 )

million € Service Units Special Units Consolidation Reconciliation


Net sales 5 1 (1) 5

Internal sales within the Group 57 27 (514) (429)

Total sales 62 28 (514) (424)

EBIT (12) (5) 4 (12)

Adjusted EBIT (12) (3) 4 (11)


Net sales 6 1 0 6

Internal sales within the Group 60 33 (416) (323)

Total sales 65 34 (416) (316)

EBIT (9) (2) 1 (10)

Adjusted EBIT (6) 0 1 (6)

1) Figures of 2018/2019 have been adjusted.

The Service Units mainly include Global Shared Services, Regional Services Germany and Corporate Services. The Special Units

include asset management for the Group’s real estate, cross-business area technology projects as well as non-operating entities

needed for example for Group financing.

The reconciliation of the earnings figure EBIT to EBT according to the statement of income is presented below:

RECONCILIATION EBIT TO EBT

million €

1st quarter ended

Dec. 31, 20181)

1st quarter ended

Dec. 31, 2019

Adjusted EBIT as presented in segment reporting 217 50

Special items2) (36) (166)

EBIT as presented in segment reporting 181 (115)

+ Finance income 196 206

– Finance expense (279) (299)

– Items of finance income assigned to EBIT based on economic classification 0 0

+ Items of finance expense assigned to EBIT based on economic classification 2 3

EBT (income/(loss) before tax) as presented in the statement of income 99 (206)

1) Figures have been adjusted (cf. Note 02). 2) Refer to the explanation of the special items in the “Report on the economic position”.



44

09 Sales Sales and sales from contracts with customers are presented below:

SALES



Elevator Technology

Plant Technology

Marine Systems

Materials Services

Steel Europe


1st quarter ended Dec. 31, 20181)

Sales from sale of finished products 825 493 50 62 5 698 1,960 0 (347) 3,746

Sales from sale of merchandise 140 68 25 10 7 2,459 74 0 (42) 2,740

Sales from rendering of services 58 2 876 134 8 160 29 0 (36) 1,230

Sales from construction contracts 205 0 936 396 277 0 0 0 (3) 1,810

Other sales from contracts with customers 5 12 35 7 1 30 72 0 (3) 160

Subtotal sales from contracts with customers 1,232 575 1,922 608 298 3,347 2,135 0 (431) 9,686

Other sales (1) (2) 2 7 0 41 (4) 0 8 51

Total 1,231 573 1,923 615 298 3,388 2,131 0 (424) 9,736


Sales from sale of finished products 975 472 44 45 6 668 1,712 0 (216) 3,706

Sales from sale of merchandise 116 58 27 8 15 2,020 52 0 (33) 2,263

Sales from rendering of services 59 2 924 111 12 175 36 1 (35) 1,285

Sales from construction contracts 211 0 1,023 576 348 0 0 0 (2) 2,155

Other sales from contracts with customers 3 13 26 12 1 28 55 0 (2) 137

Subtotal sales from contracts with customers 1,365 544 2,044 752 382 2,892 1,855 1 (289) 9,546

Other sales 2 (1) 1 2 (1) 154 (4) 0 (27) 127

Total 1,367 544 2,045 755 381 3,046 1,851 1 (316) 9,674

1) Figures have been adjusted (cf. Note 02 and 08).



45

SALES FROM CONTRACTS WITH CUSTOMERS BY CUSTOMER GROUP



Elevator Technology

Plant Technology

Marine Systems

Materials Services

Steel Europe



Automotive 1,163 234 1 0 0 563 632 0 (84) 2,507

Trading 27 22 475 1 67 448 451 0 (222) 1,270

Engineering 12 293 129 218 2 298 76 0 (31) 998

Steel and related processing 1 5 1 4 0 679 482 0 (93) 1,079

Construction 0 6 875 0 0 176 15 0 (3) 1,069

Public sector 0 2 69 0 215 17 9 0 (1) 310

Packaging 0 0 0 3 0 19 314 0 (2) 334

Energy and utilities 0 1 11 19 0 57 66 0 0 153

Other customer groups 29 13 361 362 14 1,090 90 0 6 1,965

Total 1,232 575 1,922 608 298 3,347 2,135 0 (431) 9,686


Automotive 1,282 179 2 0 0 430 616 0 (22) 2,488

Trading 55 23 521 13 120 505 418 0 (196) 1,460

Engineering 8 310 147 364 3 293 60 0 (21) 1,165

Steel and related processing 2 8 1 9 0 553 367 0 (62) 878

Construction 0 4 929 0 0 146 8 0 (7) 1,081

Public sector 0 1 62 0 245 14 0 0 (4) 318

Packaging 0 0 1 1 0 26 263 0 (3) 287

Energy and utilities 0 4 9 19 0 25 51 0 0 108

Other customer groups 17 15 372 346 15 901 72 0 26 1,762

Total 1,365 544 2,044 752 382 2,892 1,855 1 (289) 9,546

1) Figures have been adjusted (cf. Note 02 and 08).



46

SALES FROM CONTRACTS WITH CUSTOMERS BY REGION



Elevator Technology

Plant Technology

Marine Systems

Materials Services

Steel Europe



German-speaking area2) 459 110 195 40 52 1,148 1,157 0 (242) 2,919

Western Europe 153 124 320 23 20 801 471 0 (122) 1,792

Central and Eastern Europe 55 11 8 29 0 422 143 0 (27) 642

Commonwealth of Independent States 3 4 14 22 0 10 13 0 0 67

North America 260 164 692 57 1 750 172 0 (33) 2,064

South America 28 37 99 37 1 9 31 0 (1) 242

Asia / Pacific 15 16 175 109 87 96 27 0 (2) 524

Greater China 244 88 314 95 0 29 38 0 (4) 804

India 3 13 24 40 12 11 14 0 0 117

Middle East & Africa 11 6 80 156 125 70 69 0 (1) 516

Total 1,232 575 1,922 608 298 3,347 2,135 0 (431) 9,686


German-speaking area2) 403 100 200 52 90 1,085 979 0 (209) 2,701

Western Europe 220 101 323 29 32 632 421 0 (27) 1,731

Central and Eastern Europe 97 10 8 112 0 337 142 0 (9) 696

Commonwealth of Independent States 4 7 14 27 0 9 12 0 0 73

North America 282 125 774 75 2 634 152 0 (23) 2,021

South America 32 33 99 59 3 9 27 0 (3) 259

Asia / Pacific 10 22 178 166 86 95 17 0 (3) 572

Greater China 302 132 368 51 0 27 31 0 (10) 901

India 5 8 21 59 8 14 12 0 (1) 127

Middle East & Africa 10 5 59 121 161 51 63 0 (4) 467

Total 1,365 544 2,044 752 382 2,892 1,855 1 (289) 9,546

1) Figures have been adjusted (cf. Note 02 and 08). 2) Germany, Austria, Switzerland, Liechtenstein

Of the sales from contracts with customers, €2,134 million (prior year: €1,936 million) results from long-term contracts and €7,413

million (prior year: €7,750 million) from short-term contracts, €3,052 million (prior year: €3,324 million) relates to sales recognized

over time, and €6,495 million (prior year: €6,362 million) to sales recognized at a point in time.



47

10 Earnings per share Basic earnings per share are calculated as follows:

EARNINGS PER SHARE

1st quarter ended Dec. 31, 20181) 1st quarter ended Dec. 31, 2019

Total amount

in million €Earnings per

share in € Total amount

in million €Earnings per

share in €

Net income/(loss) (attributable to thyssenkrupp AG's shareholders) 60 0.10 (372) (0.60)

Weighted average shares 622,531,741 622,531,741

1) Figures have been adjusted (cf. Note 02).

There were no dilutive securities in the periods presented.

11 Additional information to the consolidated statement of cash flows The liquid funds considered in the consolidated statement of cash flows correspond to the “Cash and cash equivalents” line item in

the consolidated statement of financial position. As of December 31, 2019 cash and cash equivalents of €25 million (prior year: €27

million) result from the joint operation HKM.

Essen, February 10, 2020

thyssenkrupp AG

The Executive Board

Merz

Burkhard Dietsch Keysberg


Review report

48

Review report To thyssenkrupp AG, Duisburg and Essen

We have reviewed the condensed consolidated interim financial statements – comprising the consolidated statement of financial

position, the consolidated statement of income and the consolidated statement of comprehensive income, the consolidated statement

of changes in equity, the consolidated statement of cash flows and selected explanatory notes – and the interim group management

report of thyssenkrupp AG, Duisburg and Essen, for the period from October 1, 2019, to December 31, 2019, which are part of the

quarterly financial report pursuant to § (Article) 115 WpHG (“Wertpapierhandelsgesetz” German Securities Trading Act). The

preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial

reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German

Securities Trading Act applicable to interim group management reports is the responsibility of the parent Company’s Board of

Managing Directors. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on

the interim group management report based on our review.

We conducted our review of the condensed consolidated interim financial statements and the interim group management report in

accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der

Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW) and additional observed the International Standard on Review

Engagements “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” (ISRE 2410). Those

standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance,

that the condensed consolidated interim financial statements have not been prepared, in material respects, in accordance with the

IFRS applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been

prepared, in material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group

management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does

not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not

performed a financial statement audit, we cannot issue an audit opinion.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim

financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial

reporting as adopted by the EU nor that the interim group management report has not been prepared, in material respects, in

accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.

Essen, February 12, 2020

PricewaterhouseCoopers GmbH

Wirtschaftsprüfungsgesellschaft

Harald Kayser Michael Preiß

(German Public Auditor) (German Public Auditor)


Additional information | Contact and 2020 / 2021 financial calendar

Contact and 2020 / 2021 financial calendar

For more information please contact:

Communications

Phone: +49 201 844-536043

Fax: +49 201 844-536041

Email: [email protected]

Investor Relations


Institutional investors and analysts

Phone: +49 201 844-536464

Fax: +49 201 8456-531000

Private investors

Phone: +49 201 844-536367

Fax: +49 201 8456-531000

Published by

thyssenkrupp AG

thyssenkrupp Allee 1, 45143 Essen, Germany

Postfach, 45063 Essen, Germany

Phone: +49 201 844-0

Fax: +49 201 844-536000


www.thyssenkrupp.com

2020 / 2021 financial calendar

May 12, 2020

Interim report 1st half 2019 / 2020 (October to March)

August 13, 2020

Interim report 9 months 2019 / 2020 (October to June)

November 19, 2020

Annual Report 2019 / 2020 (October to September)

February 5, 2021

Annual General Meeting

February 10, 2021

Interim report 1st quarter 2020 / 2021 (October to December)

This interim report was published on February 13, 2020.

Produced in-house using firesys.

Forward-looking statements

This document contains forward-looking statements that reflect management’s

current views with respect to future events. Such statements are subject to risks

and uncertainties that are beyond thyssenkrupp’s ability to control or estimate

precisely, such as future market and economic conditions, the behavior of other

market participants, the ability to successfully integrate acquired businesses and

achieve anticipated synergies and the actions of government regulators. If any of

these or other risks and uncertainties occur, or if the assumptions underlying any

of these statements prove incorrect, then actual results may be materially different

from those expressed or implied by such statements. thyssenkrupp does not

intend or assume any obligation to update any forward-looking statements to

reflect events or circumstances after the date of these materials.

Rounding differences and rates of change

Percentages and figures in this report may include rounding differences. The signs

used to indicate rates of change are based on economic aspects: Improvements

are indicated by a plus (+) sign, deteriorations are shown in brackets ( ). Very high

positive and negative rates of change (≥500 % or ≤(100)%) are indicated by ++

and −− respectively.

Variances for technical reasons

Due to statutory disclosure requirements the Company must submit this financial

report electronically to the Federal Gazette (Bundesanzeiger). For technical reasons

there may be variances in the accounting documents published in the Federal

Gazette.

German and English versions of the financial report can be downloaded from the

internet at www.thyssenkrupp.com. In the event of variances, the German version

shall take precedence over the English translation.

Additional information

www.thyssenkrupp.com

Documents

thyssenkrupp Interim report 1st quarter 2019/2020€¦ · Automotive Global sales and production of cars and light trucks in 2019 down significantly from a year earlier, driven in